December 17, 2009

Health Reform: Taking the Wrong Risks

In the cradle of American innovation, workers are making career choices
based on co-payments, pre-existing conditions and other minutiae of
health insurance. They are not necessarily making decisions based on
what would be best for their careers and, in turn, for the American
economy — that is, “where their skills match and where they can grow
the most,” as another Silicon Valley entrepreneur, Cyriac Roeding, says. Health insurance, Mr. Roeding adds, “is distorting the decision-making.”

Without health reform, entrepreneurs will continue to take the wrong
risks. Starting a company is the art of making do without resources.
This often means limiting your own compensation and forgoing health
insurance at the start. When recruiting employees, its difficult in the
early stages of a company to offer health benefits that are comparable let
alone competitive with those of larger companies. This despite the fact
that when a startup employee gets sick, it can have a broad impact on
the productivity of the company overall.

As the economy is recovering
there is no better time to start a new company. Silicon Valley is
getting back to what it does best, we need Washington to do the same.

Comments

In the cradle of American innovation, workers are making career choices
based on co-payments, pre-existing conditions and other minutiae of
health insurance. They are not necessarily making decisions based on
what would be best for their careers and, in turn, for the American
economy — that is, “where their skills match and where they can grow
the most,” as another Silicon Valley entrepreneur, Cyriac Roeding, says. Health insurance, Mr. Roeding adds, “is distorting the decision-making.”

Without health reform, entrepreneurs will continue to take the wrong
risks. Starting a company is the art of making do without resources.
This often means limiting your own compensation and forgoing health
insurance at the start. When recruiting employees, its difficult in the
early stages of a company to offer health benefits that are comparable let
alone competitive with those of larger companies. This despite the fact
that when a startup employee gets sick, it can have a broad impact on
the productivity of the company overall.

As the economy is recovering
there is no better time to start a new company. Silicon Valley is
getting back to what it does best, we need Washington to do the same.